A market potential analysis is conducted in order to identify the total size of the market for a specific product and is usually measured either by sales value or sales volume. Determining the potential of a product is an essential part of a successful marketing process as it sets the limits for potential profitability in various growth and investment scenarios.
A market potential analysis can be conducted on basis of secondary data collected by various commercial and non-commercial research organizations, trade organizations, financial reports of global leaders in the field or governmental agencies. Data also be generated by conducting customer surveys or collecting primary data by other means.
Market potential is calculated, apart from identifying the existing volumes, by creating growth estimates based on varying set of indicators. The acceleration speed, or growth rate, of given industry is often referred to as Compound Annual Growth Rate (CAGR).
The attractiveness of a market, once the current value and the estimated growth rate of the market is established, is defined by assessing the level of competition, barriers of entry, threat of substitute products etc.
We have mastered the process of evaluating the potential and attractiveness of a market so that you do not need to. Our team has vast experience in finding data and analyzing it in order to produce reliable models that can be tested in various given situations based on your budgets and history.